For the last several weeks, a firestorm has been raging between eBay and activist investor Carl Icahn, who has been blasting the company’s CEO and its board members, particularly the famed Silicon Valley investor Marc Andreessen.
In his letters, Icahn has also been making two demands: That PayPal spin-off from eBay and that two of his employees join the company’s board.
Not only has CEO John Donahoe staunchly insisted that the two company’s will not split, but today eBay rejected both of Icahn’s board member nominees in its preliminary proxy statement for its annual meeting.
eBay’s Corporate Governance and Nominating Committee recommended Scott Cook to serve as a board member again. In his letters, Icahn had insisted multiple times that Cook, co-founder of Intuit, shouldn’t be on the board, because Intuit is a long-term competitor of PayPal.
eBay’s other board nominees are Elevation co-founder Fred Anderson, former CEO of Agilent Technologies Edward Barnholt, and John Donahoe, eBay’s president and CEO.
In his latest letter to the eBay’s board this morning, Icahn writes that Donahoe has cost shareholders $US4 billion because of his incompetence.
eBay responded by accusing Icahn of a “false and misleading” attack:
John Donahoe has delivered astounding results for eBay shareholders since he became CEO in 2008. In the five years since John’s first analyst day, eBay’s stock price has increased more than 460%, significantly outpacing both the Nasdaq and the overall market. John’s track record of success at eBay, driving the company’s turnaround and growth, is well documented. Yet in pursuit of his own profit motives, Carl Icahn has made another unsubstantiated attack on John. Just like his previous ones, this attack is false and misleading and has already been utterly discredited by the facts.
Disclosure: Marc Andreessen is an investor in Business Insider.